59. A firm, in which existing condition of technique and organising ability,
has the lowest average cost of production per unit is called

Ans: Optimum sized firm

60. A small change in sales results in disproportionate change in EBIT, other
things being equal, is called

Ans: Operating leverage

61. Clientele effect is relatively more associated with

Ans: Dividend decision

62. Which one of the following is not a motie for holding cash ?

Ans : Profit motive

63. _______ model is an approach that provides for cost-efficient cash
balances.

Ans: Baumol model

64. 'Factoring' as a financial service is associated with

Ans: Account Receivable

65. In a JIT environment, the flow of goods is controlled by

Ans: Pull approach

66. A firm in which lower level of current assets is supporting a given level
of output is pursuing

Ans: Aggressive working capital policy

67. A policy that involves matching of assets and liability maturity is called

Ans: Hedging policy

68. The ratio that measures the ability of the firm to make committed payments
is called

Ans: Debt service coverage ratio

69. Break-even point and margin of safety can be determined by using

Ans: P/V ratio

70. HMT Ltd. is an example of a/an

Ans: Industry

71. One of the following is not a measure of size. Identify.

Ans: Profit

72. Which of the following has government ownership, control and participation
in business decisions as an essential feature?

Ans: Public sector organization

73.The concept of joint sector was introduced by Govt. of India on the
recommendations of

Ans : Dutt Committee

74. Indian Railways is an example for

Ans: Departmental Undertaking

75. A company in which not less than 51 percent of paid-up share capital is
held by the Central Government or State Government or partly by the Central
Government and partly by one or more State Governments is a

Ans: Government Company

76. The process of withdrawing one's stake either in full or part by the
government is called

Ans: Disinvestment

77. Changes in technology illustrate

Ans: Cyclical changes or Seasonal changes

78. Internal dis-economies of scale happen

Ans: When an increase in the scale of production leads to a higher cost per
unit

79. The disguised unemployment refers to

Ans: more persons employed for a job which a few can accomplish

80. The credit for forming the first industrial union in 1918 goes to

Ans: B.P. Wadia

81. Prime benefit accruing to the employes are usually

Ans: Fringe benefits

82. The report of the first National Commission on Labour was submitted in

Ans: 1969

83. During the recent Period nearly 50 percent of GDP is being contributed by

Ans: Services factor

84.The pace of employment growth in the manufacturing sector during the
post-reform period has

Ans: increased from 2.06% to 3.0%

85. There is a consistent decline in the mode of employment in

Ans: Regular employment

86. The ratio that indicates what proportion of Earning Per Share has been used
for paying dividend is called

Ans: Payout ratio

87. Return of Investment (ROI) is a

Ans: Performance criterion

88. The Liquidity Ratio is satisfactory when it is

Ans: 1 : 1

89. 'Core Working Capital' is more or less of a

Ans: Fixed nature

90. Yield on share is equal to

Ans: DPS/Market price of share * 100

91. The earning power of the company depends upon

Ans: Net profit to capital turnover ratio

92. Cash flow in capital budgeting decision means

Ans: PAT + Depreciation

93. One of the following is not a source of funds. Which is that?

Ans. Decrease in deferred payment liabilities

94. In capital budgeting decisions, the time value of money is considered in
case of

Ans: NPV

95. Cost of capital serves as __________ rate for capital investment.

Ans: Cut-off

96. According to traditional approach the cost of capital is affected by

Ans: Debt equity mix

97. Substitution of home-made leverage into corporate leverage is highlighted
in capital structure theory of

Ans: Modigliani and Miller

98. Trading on equity implies a ______ debt equity ratio.

Ans: High

99. The Capital Asset Pricing Model (CAPM) was developed by

Ans: William Sharpe

100. Depreciation is included in costs in case of

Ans: Average rate of return

101. Operating profit meas

Ans: Profit before interest and tax

102. Bird-in-hand theory of dividend ws advocated by

Ans: Gorden and Lintner

103. The financial transaction wherein an investor purchases a security only
for the dividend and sells it after receiving the same is called

Ans: Dividend stripping

104. Projects which compete with each other in capital investment decisions are
called

Ans: Mutually exclusive projects

105. Which one of the following is not a capital budgeting decision ?

Ans: Investment in current assets

106. The cost of depreciation generation funds is equal to

Ans: Cost of retained earnings

107. The interest rate that equates the present value of the expected future
cash flows to the initial cost outlay is

Ans: IRR

108.The most important
variable while calculating the cost of debt is

Ans: Tax rate

109. Which one of the
following will take place when a fair return is not realized as

capitalization?

Ans: Over capitalization

110. The ratio that
indicates a firm's commitment to meet short-term liabilities is

called

Ans: Current ratio

111. Sales value
variance is the difference between

Ans: Budgeted sales and
Actual sales

112. When margin of safety
is 20 percent and P/V ratio is 60 percent, the profit will be

Ans: 12 percent

113. The difference
between fixed and variable cost has a special significance in the

preparation of

Ans: Flexible budget

114. The time normally
taken in replenishing inventory after the order has been placed is

Ans: Lead time

115. Market risk is
measured by

Ans: Beta co-efficient

116. The concept of
representative firm was introduced by

Ans: Alfred Marshall

117. The deductive
theory of industrial location was propounded by

Ans: Alfred Weber

118. sargent Florence
has popularised one of the following factors:

Ans: Coefficient of
localisation

119. Which one of the
factors is not a significantly influencing factor for industrial

location?

Ans: Financial
facilities

120. The two working
groups set up to study the problem of industrial backwardness are

Ans: B.D. Pandey and
N.N. wanchoo Committee

121. Two factor theory
of motivation was developed by

Ans: Frederick Herzberg

122. Inner circles and
outcircle concepts were used which defining a Large Industiral

House by a committee
known as

Ans: R.K. Hazari
Committee

123. One of the
following is not a multiplant unit. Pick it up.

Ans: Andhra Pradesh
Dairy Development Corporation Ltd.

124. The grid approach
to organisation development was developed by

Ans: Blake and Mouton

125. Location of a plant
is influenced by one of the following. Pick it up.

Ans: Infrastructural
facilities

126. An informal
alliance among individuals or groups that is designed to achieve some

common objective is
called

Ans: Coalition

127. The goals that are
established by top management and reflect their intentions of

what the organisation is
to accomplish are called

Ans: Strategic goals

128. A plan that is used
to operationalise another plan is known as

Ans: Action plan

129. One of the
following is not a public sector multiplant unit. Pick it up.

ans: Singareni
Collieries Ltd.

130. Job enrichment was
developed by

Ans: Frederick Herzberg

131. ______ aproach
deals with both the work system and the workers' individual

preferences

Ans: Job characteristics

132. A 'congregation' or
body of persons assembled at a particular time and place for

economic purpose is
known as a/an

Ans: Firm

133. One of the
following is not associated with span of management. Who is he?

Ans: Merton Miller

134. A conglomerate is
an organisation composed of a number of

Ans: Unrelated businesses

135. Hospitals and
universities are examples of

Ans: Professional
bureaucracies

136. The human relations
approach to theory of motivation was developed by

Ans: Maslow

137. One of the
following is known as the Economic Constitution of India. Pick it up.

Ans: Industrial Policy
Resolution, 1956

138. Integrating a
National Economy into a World Economy is known as

Ans: Globalization

139. When a group member
attains benefit from the group without doing an appropriate

share of the work it is
called

Ans: Free riding

140. Which one is not
the principal upward communication channel?

Ans: Ombudsman

141. Personal role
conflict occurs when

Ans: The requirements of
the job are in conflict with the workers' values, attitudes, and

needs

142. A leadership
behaviour centered on the concern for subordinate feelings and respect

for their ideas is known
as

Ans: employee-centered
leader behaviour

143. What is the
relation between effectiveness and effiy as far as planning is

concerned?

Ans: Effectiveness
follows efficiency

144. Chronological
sequences of required actions are

Ans: Procedures

145. One of the
following is not a commonly stated problem of the small scale sector: